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Toledo ends alliance talks with Jinchuan

Philippines-focused Toledo Mining Corporation plc said it had failed to reach agreement with Jinchuan Group on a strategic alliance to develop Toledo's nickel interests on Palawan Island.

Jinchuan had intended to subscribe for new shares in Toledo at 42p a share, representing 29.9% of the company's enlarged share capital.

Toledo said that due to uncertainties on the part of both companies, their detailed discussions had not concluded in an agreement. Toledo intended to maintain a dialogue with Jinchuan with a view to working together in the future.

The company has begun to explore alternative sources of funding for its strategic plan and said it will make further announcements in due course.

Toledo previously announced it had received a preliminary approach from a third party which may or may not lead to an offer. It wished to clarify that this party was not Jinchuan.

Toldeo shares were down 1.25p at 32p.

Story provided by StockMarketWire.com

13/12/2010